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Currencies Update: Strengthened dollar
Written by article default Thursday, 30 September 2010 12:24
So far throughout the currencies market the green Benjamin was able to erase loses and gain strong momentum since that the Chicago PMI of this month showed that manufacturing conditions enhanced to 60.4 from a prior reading while that the second quarter final reading of the superpower personal consumption climbed up to 2.2% from 2.0%, damping speculations that the Federal Reserve will intend to take more steps to lower interest rates.Consequently the dollar index, which tracks the strength of the Federal currency in front a basket of currencies, climbed considerably to the upside on the four-hour and one-hour charts to trade so far around 78.89 recording a high of 79.01 and a low of 78.41.
As a result, the euro-dollar pair is falling strongly on the four-hour chart being pulled by the strengthened U.S currency to have so far the Union currency trading around $1.3603 recording a high of $1.3681 and a low of $1.3557 with a resistance level seen at $1.3775 and a support detected at $1.3420, knowing that the pair may plummet further according to the four-hour momentum indicators.
As for the pound-dollar pair, it is dropping as well to the downside due to the present strengthening of the dollar and may actually slip further to the downside according to the four-hour stochastic oscillator, having up till now the royal pound trading around $1.5725 recording a high of $1.5921 and a low of $1.5693 with a resistance detected at $1.6000 and a support at $1.5725.
Now, turning to the dollar-yen pair, it is actually consolidating on the one-hour chart and inclining on the four-hour scale, knowing that a further climb of the pair to the upside is highly projected according to the four-hour momentum indicators, having the pair now trading around 83.53 recording a high of 83.80 and a low of 83.14 with a resistance at 84.40 and a support at 82.40.